Today's Edition
Dr. Ahmed Mohamed Alebri *
Digital technologies including generative artificial intelligence (AI), quantum technologies, machine learning and cloud computing, have become indispensable to modern-day life. However, the electricity demand driven by these technologies’ rapid growth poses a significant challenge. If growth in the digital economy is to be sustained, this looming power crunch must be addressed. As a reliable, efficient and lower carbon intensity energy source for power generation, natural gas, particularly in the form of Liquified Natural Gas (LNG) presents the most viable solution.
AI algorithms need substantial computational capability for tasks such as deep learning, neural network training, and real-time data processing. Data centres, which house the servers and storage systems necessary for cloud computing, require a great deal of electricity. The International Energy Agency forecast in January that global data centre electricity demand will more than double by 2026, consuming as much energy as Sweden or Germany, with AI significantly driving this increase.
While renewable energy sources, such as wind and solar power, will be pivotal in creating sustainable energy for the future their intermittent nature poses challenges in meeting the power demand from AI and data centres. Renewable energy storage technologies are improving, but not at a sufficient pace to bridge this gap. The infrastructure for renewable energy also cannot scale up rapidly enough to meet the anticipated demand.
Natural gas offers a compelling solution to plug the looming power generation gap, with reliability one of its strongest attributes. Supply is not subject to weather conditions, nor time of day. It provides the steady and controllable source of energy needed for AI applications and data centres 24/7. The infrastructure for transporting and storing LNG is also well-established globally, allowing for rapid deployment and scalability.
Gas plants can be built at various scales, in proximity to LNG infrastructure such as regasification plants making it feasible to provide power for small to large data centres. This scalability ensures that as data centres and AI adoption expands, power supplies can grow accordingly. LNG can also assist data entre operators with another of their challenges, the great amount of heat data centres generate. Harnessing the cold energy released during the re-gasification process for LNG could be used to cool data centres, resulting in significant energy savings and lower carbon footprints. Projects in Asia and Europe have explored the integration of LNG technologies in data centre cooling systems, demonstrating the feasibility and advantages of leveraging LNG for energy-efficient cooling solutions.
Although gas is a fossil fuel, it is the cleanest burning option available. The transition from coal to gas in power generation can half CO2 emissions. This is particularly important in countries where coal is still king. Advances in carbon capture and storage technology, such as our pioneering projects in the UAE, can further mitigate emissions from natural gas and reduce the carbon footprint of digital infrastructure.
In 2023, the UAE recorded a 15.3% increase in IT capacity, reaching 235.3MW, according to Knight Frank’s latest Middle East and North Africa (MENA) data centre report. This increase is part of a wider expansion, driven by the country’s UAE National Strategy for Artificial Intelligence 2031, which will position the country as a global leader in AI. While nuclear and renewables are making a growing contribution to the UAE’s power needs, the nation’s AI and digital ambitions is being enabled thanks to natural gas supplied by ADNOC Gas. Today we provide over 60% of the UAE’s gas demand, much of which is used to generate electricity.
To help meet future global demand for LNG, ADNOC Gas is constructing the Ruwais LNG project. It will more than double the UAE’s LNG output to around 15mmtpa and it will be the first LNG export facility in MENA to run on clean power. Other countries are following the UAE’s lead. Japan and South Korea, both heavily reliant on imported energy, have invested significantly in LNG infrastructure to ensure a stable and clean energy supply for their growing tech industries.
The digital age presents significant energy challenges that cannot yet be met by renewable energy alone. In the UAE we know natural gas offers a practical and reliable solution to bridge the looming power gap. By integrating LNG infrastructure to supply gas into power generation strategies alongside renewables, countries and companies can ensure AI driven economic progress, while contributing to global decarbonisation efforts.
*The author is the CEO of ADNOC Gas
